Appen (APX) H1 2026 earnings summary

Executive summary

• H1 FY2026 revenue reached $119.9 million, up 17.5% year-over-year, driven by 80% growth in Appen China and stabilization in Appen Global's traditional business.

• Appen China delivered standout performance with revenue of $76.2 million (+80% year-over-year), annualized run rate exceeding $175 million by June, and underlying EBITDA up 316% to $12.1 million.

• Underlying EBITDA before FX improved by $7.5 million to $5.3 million, with EBITDA margin at 4.5%.

• Statutory net loss after tax narrowed to $4.4 million from $19.3 million in H1 FY2025.

• Cash balance at period end was $44.7 million, with no debt.

Financial highlights

• Group revenue increased 17.5% to $119.9 million compared to H1 FY2025.

• Appen China revenue grew 80.4% to $76.2 million; Appen Global revenue declined 26.9% to $43.7 million.

• Gross margin slightly decreased by 30 basis points to 36.7% due to customer and project mix.

• Underlying NPAT improved by $8 million to $(4.2) million; statutory NPAT improved to $(4.4) million.

• No interim dividend declared for the period.

Outlook and guidance

• FY2026 group revenue guidance reaffirmed at $270 million–$300 million, with underlying EBITDA before FX margin expected between 5%–10%.

• Positive signals for LLM-related growth in both Appen Global and Appen China; seasonality expected to skew revenue towards H2.

• Focus remains on high data quality, customer growth in high-potential segments, and operational efficiency.

• No additional funds required to support growth; current cash reserves deemed sufficient until self-sustainability.